>> advertising. >> narrator: a slick brochure sent to investors like jim morrione says that ad sales and online product sales will translate into huge returns for those who put in money early. >> "investors become overnight billionaires." [ laughs ] that says it all, doesn't it? >> narrator: to him, the company seems like it has a strong business model, and they appear to have the right team to make it happen. >> the marketing director here, she worked at hp and ricoh. it looked like a good team of people that they were going to bring in here to start up this company. >> narrator: pitch materials sent to investors like morrione trumpet the company's ceo, ronald mulhall. >> they portrayed this guy as a successful lawyer, and this was his brainchild. >> narrator: marc blau, the assistant regional director for the securities and exchange commission in los angeles, says mulhall's real résumé was, in truth, much less impressive. >> what they failed to disclose to people was that mr. mulhall had, in fact, been disbarred by the state of california 10 years prior for stealing client money,